I'm Downsizing. How Do I Invest My Equity?

With interest rates being at an all-time low, shopping around for a good rate of return from a bank or building society is somewhat difficult.

If you’re very lucky, you might be able to achieve a 1% to 2.25% return on your money and it sometimes feels like you might as well put it in a suitcase under the bed!

If you are downsizing and wish to release the equity from your property what are your options - stocks or shares? Rates of return on these types of investment can typically be around 3.5% to 4.5% but that is of course if the investments are performing well.

If you have considered property but don’t want the hassle then perhaps you should rethink as there may be a solution…

It is not unrealistic to expect a net return of up to 6% on a rental investment property, and this is not taking into account the capital growth of the asset. A three-bed semi-detached house somewhere in Shropshire might cost £150,000 to buy, and if you receive a rent of £775 per calendar month, that is a 6.2% return. With management fees typically being around 10%, this means you can expect a net yield of 5.58%.

Rental prices are remaining strong with a significant amount of activity in this sector making it a more and more attractive proposition. The “housing crisis” in the UK has fuelled this activity and it shows no sign of changing significantly with the Government’s new stance on the Help to Buy scheme.

At Nock Deighton we have an established Property Management Department who will take that hassle of renting away from you.  We ensure that each of the 700-plus properties that we manage has a dedicated property manager, one person who is responsible for the day to day management of your investment and reports directly to you.

Each of our regional offices has a team who can inspect, market and let your property and then pass on the management to our Property Management Department.

Why not get in touch with our regional offices to speak with our teams. They are always pleased to share their expert knowledge and to work with you to see how we can tailor our services to suit your requirements.

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